KN

Karishma Nair

Question 14How far do you agreeGS1GS1

Nationalization of banks in post-independence India is often termed as "the single most important economic decision in terms of political, social and economic consequences". How far do you agree with this statement?

Open scan (p.32)

Introduction

India recently celebrated 50 years of bank nationalisation, which was undertaken in 1969 by the India Gandhi Government.

18 words

Main Body

Key lines highlighted

India recently celebrated 50 years of bank nationalisation, which was undertaken in 1969 by the India Gandhi Government.

It was considered as the most important decision an various terms :

It shows caused the Indian commitme towards socialism. • It was done at a time of heyday of Cold war between capitalism &lowm -ismism, thus it gave a political message as well.

1 It involved the Indian Govt. in the banking sector for many decades to follow till 1991.

## Social

It is considered to be an important step in financial inclusion. It medium regional disparities that created social inequalities. Govt. could use the banking sector to fulfill its developmental objectives. Lead Banks Scheme Priority Sector Lending

## Economic

It is considered to have created a viable model of banking in India. Public Sector Banks have more capitalisation and economic investment for undertaking activities. Lending

Even today the only bank of India in global 100 is the nationalised SBI.
Concerns with nationalisation of banks.
Reduced competition and poor credit culture.
High number of NPA in PSBs raises concerns of its economic prudence.
Financial inclusion has still not been achieved.
Many formal means of banks to create fewer large banks.
Creating Public Sector Bank Network.
Financial inclusion through SNGs, etc.
Thus, while PSBs have served the country well, it is time to bring reforms in them according to PS Nayak Committee.
222 words8 paragraphs5 bullet points

Conclusion

Thus, while PSBs have served the country well, it is time to bring reforms in them according to PS Nayak Committee.

21 words

  • Covers political, social, economic dimensions
  • Includes concerns and reforms

Answer DNA

Reusable pieces worth remembering

opening

India recently celebrated 50 years of bank nationalisation...

transition

It was considered as the most important decision an various terms :

example

SBI

conclusion

Thus, while PSBs have served the country well, it is time to bring reforms...

Examiner score
7/10

Open original scan

Page 32

Topper

Karishma Nair

Subject & Paper

GS1GS1

Topic

Post-independence Consolidation

Economic policies

Bank nationalisation

Writing Stats

261

Total words

8

Paragraphs

5

Bullets

analytical

Tone